Alibaba’s logistics arm Cainiao partners with FairPrice Group unit in Singapore

Cainiao Network, Alibaba’s logistics arm, announced a partnership with Grocery Logistics of Singapore (GLS) to strengthen the China-based firm’s operations in the city-state.

Through the partnership, Cainiao will use GLS’ logistics solutions as it increases its daily parcel handling capacity in the Southeast Asian country.

GLS is an entity of FairPrice Group Supply Chain, a wholly owned subsidiary of supermarket chain NTUC FairPrice. GLS offers delivery solutions for fast-moving consumer goods. It operates a digitized ecosystem to fulfill last-mile delivery of bulk items, which is “a logistical challenge for online platforms,” according to Toh Hui Leng, chief operating officer of FairPrice Group.

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The partnership will be rolled out in two phases: customs clearance and last-mile delivery for purchases made from online shopping platforms Taobao and Tmall, followed by an expansion of Alibaba’s ecommerce ecosystem to support merchants’ cross-border needs for logistics.

“Taobao and Tmall have been growing in popularity among consumers in Singapore given the variety of products they offer. We anticipate this demand will continue to grow, especially in the lead-up to Alibaba’s annual 11.11 shopping festival,” said Chris Fan, Cainiao Network’s head of cross-border in Singapore.

Cainao recently partnered with the local government of Hainan in China to develop the island-province’s supply chain capabilities. It also teamed up with Korea SME and Startups Agency to facilitate exports.